Buying shares of corporate stock tends to be more risky when
A) the stock of a single corporation is purchased.
B) the stock may have to be sold within a few months.
C) all stocks bought are in the same industry.
D) all of the above are true.

Question

Quizplus · Accepted Answer

Buying shares of corporate stock is riskier when a single corporation's stock is purchased, when the stock may need to be sold quickly, and when all stocks are in the same industry, as these factors increase exposure to market volatility and lack diversification.

Buying Shares of Corporate Stock Tends to Be More Risky